MKC vs. PEP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MKC and PEP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MKC | PEP |
|---|---|---|
| Company Name | McCormick & Company, Incorporated | PepsiCo, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry | Food Products | Beverages |
| Market Capitalization | 19.39 billion USD | 204.87 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | February 21, 1973 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MKC and PEP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | MKC | PEP |
|---|---|---|
| 5-Day Price Return | 5.63% | 0.06% |
| 13-Week Price Return | -0.39% | 14.98% |
| 26-Week Price Return | -4.82% | 3.84% |
| 52-Week Price Return | -8.29% | -14.59% |
| Month-to-Date Return | 2.31% | 8.50% |
| Year-to-Date Return | -5.22% | -1.59% |
| 10-Day Avg. Volume | 2.56M | 7.75M |
| 3-Month Avg. Volume | 2.29M | 9.19M |
| 3-Month Volatility | 21.91% | 24.21% |
| Beta | 0.64 | 0.48 |
Profitability
Return on Equity (TTM)
MKC
14.27%
Food Products Industry
- Max
- 27.15%
- Q3
- 15.66%
- Median
- 10.47%
- Q1
- 7.82%
- Min
- -2.46%
MKC’s Return on Equity of 14.27% is on par with the norm for the Food Products industry, indicating its profitability relative to shareholder equity is typical for the sector.
PEP
40.65%
Beverages Industry
- Max
- 49.46%
- Q3
- 24.91%
- Median
- 11.13%
- Q1
- 5.27%
- Min
- -5.93%
In the upper quartile for the Beverages industry, PEP’s Return on Equity of 40.65% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
MKC
11.50%
Food Products Industry
- Max
- 18.44%
- Q3
- 9.92%
- Median
- 6.38%
- Q1
- 4.13%
- Min
- -0.92%
A Net Profit Margin of 11.50% places MKC in the upper quartile for the Food Products industry, signifying strong profitability and more effective cost management than most of its peers.
PEP
8.23%
Beverages Industry
- Max
- 21.86%
- Q3
- 12.24%
- Median
- 8.70%
- Q1
- 5.33%
- Min
- -4.40%
PEP’s Net Profit Margin of 8.23% is aligned with the median group of its peers in the Beverages industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
MKC
15.78%
Food Products Industry
- Max
- 24.83%
- Q3
- 14.27%
- Median
- 9.73%
- Q1
- 6.26%
- Min
- -0.10%
An Operating Profit Margin of 15.78% places MKC in the upper quartile for the Food Products industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
PEP
11.11%
Beverages Industry
- Max
- 29.32%
- Q3
- 18.25%
- Median
- 13.42%
- Q1
- 10.58%
- Min
- 0.71%
PEP’s Operating Profit Margin of 11.11% is around the midpoint for the Beverages industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MKC | PEP |
|---|---|---|
| Return on Equity (TTM) | 14.27% | 40.65% |
| Return on Assets (TTM) | 5.92% | 7.42% |
| Net Profit Margin (TTM) | 11.50% | 8.23% |
| Operating Profit Margin (TTM) | 15.78% | 11.11% |
| Gross Profit Margin (TTM) | 38.54% | 54.92% |
Financial Strength
Current Ratio (MRQ)
MKC
0.68
Food Products Industry
- Max
- 3.80
- Q3
- 2.40
- Median
- 1.61
- Q1
- 1.28
- Min
- 0.55
MKC’s Current Ratio of 0.68 falls into the lower quartile for the Food Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
PEP
0.78
Beverages Industry
- Max
- 3.38
- Q3
- 1.97
- Median
- 1.21
- Q1
- 0.86
- Min
- 0.53
PEP’s Current Ratio of 0.78 falls into the lower quartile for the Beverages industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
MKC
0.80
Food Products Industry
- Max
- 1.87
- Q3
- 0.90
- Median
- 0.48
- Q1
- 0.24
- Min
- 0.00
MKC’s Debt-to-Equity Ratio of 0.80 is typical for the Food Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
PEP
2.79
Beverages Industry
- Max
- 2.11
- Q3
- 1.23
- Median
- 0.79
- Q1
- 0.32
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.79, PEP operates with exceptionally high leverage compared to the Beverages industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
MKC
6.49
Food Products Industry
- Max
- 70.39
- Q3
- 32.08
- Median
- 9.51
- Q1
- 4.55
- Min
- -1.69
MKC’s Interest Coverage Ratio of 6.49 is positioned comfortably within the norm for the Food Products industry, indicating a standard and healthy capacity to cover its interest payments.
PEP
13.98
Beverages Industry
- Max
- 78.96
- Q3
- 40.67
- Median
- 9.62
- Q1
- 3.59
- Min
- 0.81
PEP’s Interest Coverage Ratio of 13.98 is positioned comfortably within the norm for the Beverages industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MKC | PEP |
|---|---|---|
| Current Ratio (MRQ) | 0.68 | 0.78 |
| Quick Ratio (MRQ) | 0.22 | 0.56 |
| Debt-to-Equity Ratio (MRQ) | 0.80 | 2.79 |
| Interest Coverage Ratio (TTM) | 6.49 | 13.98 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MKC
2.48%
Food Products Industry
- Max
- 7.43%
- Q3
- 4.12%
- Median
- 2.67%
- Q1
- 1.57%
- Min
- 0.00%
MKC’s Dividend Yield of 2.48% is consistent with its peers in the Food Products industry, providing a dividend return that is standard for its sector.
PEP
3.64%
Beverages Industry
- Max
- 6.93%
- Q3
- 4.51%
- Median
- 3.09%
- Q1
- 2.03%
- Min
- 0.00%
PEP’s Dividend Yield of 3.64% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
MKC
60.21%
Food Products Industry
- Max
- 202.50%
- Q3
- 109.53%
- Median
- 67.28%
- Q1
- 39.33%
- Min
- 0.00%
MKC’s Dividend Payout Ratio of 60.21% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
PEP
98.89%
Beverages Industry
- Max
- 143.36%
- Q3
- 99.22%
- Median
- 67.03%
- Q1
- 40.31%
- Min
- 0.00%
PEP’s Dividend Payout Ratio of 98.89% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | MKC | PEP |
|---|---|---|
| Dividend Yield (TTM) | 2.48% | 3.64% |
| Dividend Payout Ratio (TTM) | 60.21% | 98.89% |
Valuation
Price-to-Earnings Ratio (TTM)
MKC
24.32
Food Products Industry
- Max
- 35.81
- Q3
- 22.88
- Median
- 17.13
- Q1
- 13.91
- Min
- 2.77
A P/E Ratio of 24.32 places MKC in the upper quartile for the Food Products industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
PEP
27.16
Beverages Industry
- Max
- 41.48
- Q3
- 28.35
- Median
- 19.09
- Q1
- 15.36
- Min
- 3.14
PEP’s P/E Ratio of 27.16 is within the middle range for the Beverages industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
MKC
2.80
Food Products Industry
- Max
- 3.63
- Q3
- 1.86
- Median
- 1.14
- Q1
- 0.68
- Min
- 0.12
MKC’s P/S Ratio of 2.80 is in the upper echelon for the Food Products industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
PEP
2.24
Beverages Industry
- Max
- 3.90
- Q3
- 2.38
- Median
- 1.54
- Q1
- 0.84
- Min
- 0.41
PEP’s P/S Ratio of 2.24 aligns with the market consensus for the Beverages industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
MKC
3.52
Food Products Industry
- Max
- 5.01
- Q3
- 2.76
- Median
- 1.98
- Q1
- 1.26
- Min
- 0.52
MKC’s P/B Ratio of 3.52 is in the upper tier for the Food Products industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
PEP
9.77
Beverages Industry
- Max
- 6.29
- Q3
- 3.58
- Median
- 2.19
- Q1
- 1.68
- Min
- 0.91
At 9.77, PEP’s P/B Ratio is at an extreme premium to the Beverages industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | MKC | PEP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.32 | 27.16 |
| Price-to-Sales Ratio (TTM) | 2.80 | 2.24 |
| Price-to-Book Ratio (MRQ) | 3.52 | 9.77 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.06 | 23.74 |